Market news
11.07.2023, 09:17

NZD/USD Price Analysis: Shows vertical fall ahead of RBNZ policy

  • NZD/USD has slipped below the 0.6200 support amid caution ahead of the RBNZ interest rate policy.
  • S&P500 futures have surrendered their entire gains added in Asia, portraying a decline in the risk appetite.
  • NZD/USD has corrected to near the upward-sloping trendline of the Ascending Triangle chart pattern.

The NZD/USD pair has displayed a steep fall after failing to extend upside above the critical resistance of 0.6220 in the London session. The Kiwi asset has sharply dropped below the round-level support of 0.6200 as investors have turned cautious ahead of the interest rate decision by the Reserve Bank of New Zealand (RBNZ).

S&P500 futures have surrendered their entire gains added in Asia, portraying a decline in the risk appetite of the market participants. The US Dollar Index (DXY) has found an intermediate support around 101.68.

The USD Index will dance to the tunes of Wednesday’s Consumer Price Index (CPI) data, which will be printed at 12:30 GMT. Inflationary pressures are expected to decelerate as gasoline prices have dropped.

NZD/USD has corrected to near the upward-sloping trendline of the Ascending Triangle chart pattern, which is plotted from July 06 low at 0.6132 while the horizontal resistance of the aforementioned chart pattern is placed from July 06 high at 0.6220. The Kiwi asset is giving a tough fight to the 100-period Exponential Moving Average (EMA) at 0.6188.

Meanwhile, the Relative Strength Index (RSI) (14) is looking for support near 40.00. A slippage below the same could trigger bearish momentum.

A downside move below July 10 low at 0.6160 will expose the asset to June 29 low at 0.6116. A slippage below the latter would drag the asset to June 05 low at 0.6041.

Alternatively, a decisive break above June 22 high around 0.6220 will drive the asset towards June 14 high at 0.6236 followed by May 17 high at 0.6274.

NZD/USD two-hour chart

 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location